One outage cost Australia $500m: Senate must amend UOMO Bill to fix telco reliability
Australian Communications Consumer Action Network
A single Telstra outage in July cost the Australian economy over half a billion dollars, with businesses and consumers left on the hook, according to new economic modelling released as the Senate debates legislation that could prevent the next one.
The report, conducted by FTI Consulting and commissioned by peak communications consumer body ACCAN, found the 8 July Telstra outage had an economy wide impact of $552 million, with $302 million in direct costs.
The findings land as the Senate considers the Telecommunications Legislation Amendment (Universal Outdoor Mobile Obligation) Bill 2025 (the UOMO Bill). ACCAN is calling on all parties and crossbench senators to support amendments that provide the Minister comprehensive powers to introduce enforceable reliability standards and to mandate domestic mobile roaming.
Quotes attributable to ACCAN CEO Carol Bennett:
"Outages are far more than an inconvenience. One outage cost this economy over half a billion dollars, but the telco at fault didn’t foot the bill. Australian households and small businesses did,".
“The Australian economy has worn a half-billion dollar hit – so that Telstra could potentially save $30,000 on a legacy, outdated piece of network equipment. It is indisputable that the balance is wrong here.”
“This report has found a $500m economic hit. Expert estimates for the 2025 Optus outage found a $2 billion impact. Since April 1 this year, Optus has had 97 outages, and Telstra has had 322. Outages are a drain on our economy, and they put public safety at risk. A political response that fails to put comprehensive standards over these networks would be an abrogation of responsibility.”
"Mobile networks are the only essential service in Australia without enforceable reliability and performance requirements. Best-efforts commitments from this sector have failed again and again. Australians deserve standards that require telcos to properly resource and govern the networks we all depend on."
"When a network fails, Australians have nowhere to go. International visitors already roam automatically across all three networks. Australians can't. People in New Zealand, Canada and France have this protection in some form, and there is no reason Australians should go without."
"The UOMO Bill is a generational reform, and we support it. With simple amendments, it can deliver the comprehensive reliability and performance standards Australians need. Senators now have a safety case, an economic case and a yearlong Senate inquiry which all point the same way. The legislation is before them this week, and they should act.”
“Our research shows 94 per cent of Australians with a firm view support both minimum reliability requirements for mobile networks, and the introduction of domestic mobile roaming.”
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ACCAN continues to work with the Government, Greens and Coalition as well as crossbench senators, the National Farmers' Federation and community partners to secure amendments that make telco networks fit for purpose.
Communications are an essential service. When networks fail, Australians pay the price, and they deserve reform to held ensure the next failure will be less likely and less costly.
About us:
The Australian Communications Consumer Action Network (ACCAN) is Australia’s peak communication consumer organisation. The operation of ACCAN is made possible by funding provided by the Commonwealth of Australia under section 593 of the Telecommunications Act 1997. This funding is recovered from charges on telecommunications carriers.
Contact details:
Alec Bennetts
Mobile: 0490 540 444
Email: [email protected]
